Amazon Games gutted amid 14,000 layoffs: work on first-party video games and MMOs specifically scaled again, “casual and AI-focused games” a continued focus

Amazon confirms it’s reducing its global workforce by “approximately 14,000 roles”, and there have been substantial cuts throughout its burgeoning online game division.

As reported by Bloomberg‘s Jason Schreier, in a memo to Amazon employees reviewed by Bloomberg, Games vice chairman Steve Boom says the corporate is “leaning into the things that Amazon does best.”

The memo – which Variety shares in full – notes that Amazon will “halt a significant amount” of first-party MMO growth. Amazon Games is the present writer for MMOs like NCSoft’s Throne and Liberty, Smilegate RPG’s Lost Ark, and it’s each the writer and developer behind 2021 MMORPG New World. That recreation’s crew, Amazon Games Orange County, is engaged on a The Lord of the Rings MMO; Boom’s memo notes there can be “significant role reductions in our studios in Irvine and San Diego, as well as our central publishing team.”

While the standing of Amazon’s present and upcoming MMO initiatives is unconfirmed, Boom says “we are continuing to work with our external studio partners Crystal Dynamics on an upcoming Tomb Raider title and Maverick Games on an upcoming open world driving game.” He additionally says, “Our Montreal studio recently concluded a successful closed alpha of March of Giants and is working hard to finish the game. Our Studio 5 team just released Courtroom Chaos: Starring Snoop Dogg as the launch title in Luna and will continue their focus on more casual and AI-focused games, optimized for Luna.”

Unfortunately Amazon’s job reductions are the newest in an ongoing drawback dealing with the trade, as a GDC survey reported that “One in 10” recreation builders have been laid off in 2024, with the likes of Microsoft, 2K, and Ubisoft making main cuts this 12 months.

Fallout co-creator warns studios amid rising layoffs and concentrate on AI that devs are usually not replaceable: “You’re left with a company where nobody knows anything.”